A new analysis finds that Maine hospitals are in a precarious financial position and that failure to act could result in closures and the end of some services.
The Maine Hospital Association hired national consulting firm PYA to conduct the analysis, and its findings are bleak. The report said that Maine's larger hospitals are the fifth-poorest in the U.S. and are the second most heavily in debt.
For Critical Access Hospitals, the situation is slightly better, though the report found that some are financially strong and others are in trouble.
Jeff Austin, spokesperson for the Maine Hospital Association, said the national comparison is important.
"When hospitals sort of say that they're struggling, you now have a national context to show it is truly struggling," he said. "This isn't just how hospitals are everywhere. We're having a particular challenge right now that needs particular attention."
Austin said one reason why Maine hospitals face unique challenges are high expenses, such as utilities, housing, and aging facilities, combined with a relatively poor population that relies on Medicare and Medicaid for insurance.
He said hospitals need stability and can no longer absorb cuts. "The ability to absorb is gone, ya know? And that's what these numbers are telling us," Austin said.
Many Maine hospitals are currently having their MaineCare payments capped because of a state deficit.
